1 REGISTER NOW AT AOGEXPO.COM.AU

What’s on at AOG?

Page 4

New opportunities with FLNG

Page 6

What’s on the horizon? Page 8

Subsea latest developments

Page 14

The Official AOG Magazine

WHAT’S INSIDE?FIFO mentalhealth issues

Page 12

AOG RETURNS TO PERTH MARCH 11-13

REGISTER NOW AOGEXPO.COM.AU/REGISTER

3AOG 2015: ALL EYES ON PERTH

6FLNG: NEW OPPORTUNITIES

8WHAT’S ON THE HORIZON?

10WHAT’S ON AT AOG 2015

12FIFO: MENTAL HEALTH ISSUES

17HIGH POWERED TIMOR-LESTE

14SUBSEA LATEST DEVELOPMENTS

16MERGERS & AQUISITIONS

18WHO’S EXHIBITING?

20CONFERENCE PROGRAM

45 THINGS TO DO AT AOG

AOG 2015 WHAT’S INSIDE

visit aogexpo.com.au

*There is a $20 door entry charge for those who have not pre-registered online.

EXHIBITIONENTRY*

FREE

REGISTER NOW FOR

USE PROMO CODE: AOG15

620 exhibitors

22 different countries

over 17, 000 attendees

over 150

speakers

13 conference

streams

3 REGISTER NOW AT AOGEXPO.COM.AU

The international oil and gas sector will turn its eyes towards Perth from 11–13 March 2015 when global experts gather in the city for the annual Australasian Oil & Gas Exhibition and Conference (AOG).

AOG is forecast to achieve record numbers in 2015, with 620 exhibitors from over 22 countries, drawing more than 17,000 visitors and conference delegates from around the world to Perth.

At a time when the oil and gas sector is at a crossroads due to a collapse in crude oil prices, events like AOG are seen as critical opportunities for the industry to gather together, discuss key issues and compare notes on new ideas that will allow the industry to keep finding and producing oil and gas — even at lower price levels.

For more than 30 years, AOG has been a major platform for the exchange of ideas and technologies between local and international oil and gas industry leaders and is the biggest event of its type in the Southern Hemisphere.

As the oil and gas industry head to AOG 2015

all eyes

AOG Event Director at Diversified Communications, Bill Hare, says the secret to AOG’s long-term success has been the relevance of the technology on show each year and the contemporary topics of discussion at the conference, technology zones and networking events.

“ We, our industry and government supporters work very hard each year to ensure AOG is relevant to the industry’s needs. The oil and gas industry is ever-changing and it’s critical that a global event like AOG is abreast of the trends and what is important to our attendees,” Mr Hare said.

The AOG 2015 programme certainly fits that agenda, with the Exhibition and Conference featuring a number of innovative new activities and events.

For more information on the exciting events planned for AOG 2015, please read the remainder of this special AOG preview publication and visit aogexpo.com.au.

“ FOR MORE THAN 30 YEARS AOG HAS BEEN A MAJOR PLATFORM FOR THE EXCHANGE OF IDEAS AND TECHNOLOGIES BETWEEN LOCAL AND INTERNATIONAL OIL AND GAS INDUSTRY LEADERS AND THE BIGGEST EVENT OF ITS TYPE IN THE SOUTHERN HEMISPHERE.”

REGISTER NOW AT AOGEXPO.COM.AU 3

things to do at

This year’s AOG Conference sponsored by Aurecon, will feature a brand new stream: FLNG — one of the global oil and gas sector’s most exciting and game-changing new technologies.

With Shell’s Prelude FLNG project off the northwest coast of Australia set to become the world’s first, there is no doubt that this is a very timely and relevant topic. The FLNG stream is also boosted by the participation of a number of speakers who are working closely with the project.

Other exciting streams include Subsea, Human Capital, Australian Industry Participation and so much more. Turn to the back of this magazine to view the Conference Program Overview.

1 AOG Conference

PASSES FROM

$550All prices include GST.

Wednesday 11 and Thursday 12 March9am – 5pm

4 REGISTER NOW AT AOGEXPO.COM.AU

Kick off AOG in style at the AOG Opening Party sponsored by Aker Solutions. Always well-attended and known as a place to make new contacts or catch up with old friends, tickets to this annual event are snapped up quickly. If you are up for a great evening of food, drinks and entertainment be sure to book your tickets now and celebrate the oil and gas industry with us.

AOG Opening Party

Wednesday 11 March 6.30pm – 8.30pmTICKETS$99

As one of the most anticipated events at AOG, AOG Women brought to you by Inpex brings together women from throughout the oil and gas industry over high-tea. Enjoy an afternoon of networking and inspiration, featuring a keynote speech from Cynthia Griffin and panel discussion on issues impacting the growing number of women in the oil and gas industry. There is also chance to win a stunning Australian South Sea Cultured Pearl and Champagne Diamond Pendant valued at $2,000 thanks to Willie Creek Pearls.

3

4

2

AOG Women

Friday 13 March 1pm– 4pmTICKETS$89

For the first time in its three decade-long history, AOG stages a special event celebrating the potential of one of the most prospective oil and gas regions in the world. With a surge in new activity in East Africa beginning to match the world class West African oil and gas successes, the world’s second largest and second-most populous continent has been the site of a tremendous run of drilling activity and successes in recent years. Join leading African dignitaries and specialists as well as many local individuals and companies that have tasted success there at this special one-off event.

Africa Oil & Gas Forum

Tuesday 10 March 9am – 5pmPASSES

$550

AOG has a variety of networking zones on the show floor where you can relax, enjoy a drink, grab a bite to eat and catch up with contacts. Highlights include:

• The Den sponsored by Forum Energy Technology is the place to be for prizes and one of the best coffees at AOG.

• Matrix Oyster Bar. Jerry Fraser the ‘King of Oysters’ is back for the ultimate oyster shucking experience.

• Bratwurst Bar. Taste the finest German delicacies at the Bratwurst Bar sponsored by Weir Oil & Gas.

• INTECSEA Paella Bar. Spanish flavours burst to life at the INTECSEA Paella Bar.

• Print Hall. Wind down after a busy day with a cold beer at Print Hall, the official bar of AOG.

5 AOG Networking Zones (plus the best bites at AOG)

FOR MORE INFORMATION AND TICKETS VISIT AOGEXPO.COM.AU/2015

5

Western Australia is set to provide the economic spark that will ignite the world’s Floating LNG (FLNG) industry, opening up vast opportunities for local businesses to support numerous projects about to go into production.

The opportunities for supporting the burgeoning FLNG sector will be one of the key topics of discussion when the annual AOG Exhibition and Conference is held in Perth from 11 – 13 March, 2015.

The AOG Conference will include a special stream dedicated to this exciting new technology, which is seen as a game changer for the commercialisation of currently stranded gas fields.

The Shell operated Prelude project located off the northwest coast of Australia will be the world’s first FLNG development. There is significant interest in what projected business opportunities, and a number of other proposed Australian FLNG developments can provide for local companies.

That potential is certainly a major item of interest for the Western Australian Government, a major sponsor of AOG, which has also had important input into the structure of the AOG conference programme.

Mr Michael Mischin MLC, Minister of Commerce, says WA is already recognised around the world as a leading location for LNG production and for its world-class services supporting the LNG industry.

“ With our strong LNG history and the amount of expertise and infrastructure located here in support of our world-class projects, it is natural that we would have a strong focus on generating opportunities from the exciting FLNG industry,” Mr Mischin said.

“ We are very pleased that FLNG is a major topic at AOG and that Shell has a number of highly qualified speakers presenting.”

“ The Western Australian Government is proud to be a major sponsor of AOG in 2015, as we see the event as being a tremendous showcase for WA companies, while many international companies also use their participation at AOG as an important stepping stone to establishing a business in Perth.”

Key topics to be discussed at the FLNG stream on Thursday 12 March include:

• The Global Integrated Gas Landscape and FLNG’s Role in the Future of Energy

• Capability and Capacity Building: People and infrastructure development to support the operations and maintenance of Prelude FLNG

• Innovation Open House: FLNG and offshore facilities technology development in WA

• FLNG — Opportunities for Australia

For more information visit aogexpo.com.au/FLNG

Promises to provide new opportunities for local companies

ATTEND THE FLNG CONFERENCE STREAM

THURSDAY 12 MARCH

VISIT AOGEXPO.COM.AU/FLNGTO BOOK YOUR PASS

6 REGISTER NOW AT AOGEXPO.COM.AU

7 REGISTER NOW AT AOGEXPO.COM.AU

FLNG Shell PreludeImage provided courtesty of Photographic Services, Shell International Ltd.

800 m

700 m

600 m

500 m

400 m

300 m

200 m

100 m

London Eye Taj Mahal Eiffel Tower PetronasTowers

FLNG Facility

Taipei 101 WillisTower

Ostankino TV Tower

Canton Tower Tokyo Skytree

Burj KhalifaSydneyOpera House

mattersWhen size

• 488 m long, 74 m wide, weighs 600,000 tons when fully loaded

• Capacity: 5.3 mtpa total. 3.6 mtpa of LNG, 1.3 mtpa of condensate, 0.4 mtpa of LPG

• 600 engineers worked on the facility’s design options

• 4 soccer fields, laid end to end, would be shorter than the facility’s deck

• 175 Olympic-sized swimming pools of liquid can be held in the facility’s storage tanks

7

ANTHONY BARICHSenior EditorEnergy at Aspermont Limited Publisher of EnergyNewsPremium.net

Q What will be the next Australian oil and gas project to go to FID?

I believe that will be the Arrow LNG project in Queensland.

Q What will be the next “game changer” in the oil and gas industry worldwide?

Coretrack’s Ecopropp technology. It produces proppants from fly-ash, a by-product of coal fired power stations which is stronger and lighter and should have lower manufacturing cost than comparable products. Given the coal industry’s global push to become more efficient and cleaner, this could help the oil and gas industry as next generation technology. Q What is the biggest impediment to growth in Australia’s oil and gas industry?

Delays and the failure of Victoria and New South Wales to deal with science around CSG sooner has affected the whole industry. Coupled with the industry’s lack of openness early on to explain the differences between the US and Australia exacerbated by ‘Gaslands’.

Q What will the oil price be in 12 months’ time? And why?

The oil price might level out to US$60-70/bbl. It will take a while for the US to lower its production, as they have made such good money for such a long time. The period from 2008-2014 was so profitable, it left many companies with ample supplies of cash and assets.

Q How big an effect do you think the current oil price will have on the Australian oil and gas sector over the next 12 months?

How big? That is a very open question. No doubt it will cull the more ordinary operations, and hopefully will force consolidation within the Australian industry to make it stronger and more competitive internationally.

Q Do you see this decline in oil prices as a major impediment to shale oil and gas exploration in Australia?

Yes.

the horizon?Two industry experts cast their predictions for oil & gas in 2015 and beyond

What’s on

What do you think?Join the conversation

AOGExpo @aog_expo AOG

8 REGISTER NOW AT AOGEXPO.COM.AU

GRAEME BETHUNECEO and FounderEnergy Quest Australia

Q What is the biggest impediment to growth in Australia’s oil and gas industry?

Definitely high costs and a difficult investment market. Once again there is the issue of it becoming harder to raise capital to fund activity.

Q What will the oil price be in 12 months’ time? And why?

Some people predict a quick rebound; while some suggest we could face low prices for quite some time. There is no doubt that Chinese demand has softened, while at the same time we have surging production levels across the globe, particularly in the US. However I am not going to forecast where the oil price is heading. In that regard, I would like to quote the former US administrator and economist John Kenneth Galbraith; “The only function of economic forecasting is to make astrology look respectable”.

Q How big an effect do you think the current oil price will have on the Australian oil and gas sector over the next 12 months?

There is no doubt that the current oil price is having and will continue to have a very big impact. The question right now, for many companies, is just how low will oil prices go and for how long this low price regime will exist? It may rebound quickly, or we may face low prices for quite some time. One area of significant concern for Australia is the LNG sector, particularly for those projects that were working on rates tied to US$100 a barrel.

Q Do you agree that we are likely to see growing mergers and acquisitions activity on the back of the falling oil prices?

I think things may start to settle down a bit while companies take a breather to assess where the oil and gas prices have fallen to, where they are going, and how long they will be down.

There is also the issue of it becoming more difficult to raise capital to fund acquisitions. But on the other hand, this current price environment will create some bargains.

Q There is a point of view that the declining oil prices will lead to a significant fall in the cost of drilling and acquiring seismic, and that this will eventually lead to a surge in exploration activity?

This is the normal cycle that follows the rise and fall of oil and gas prices. There is no doubt that the strong oil price we saw in the late 2000s and in the past few years led to the surge in costs for labour and equipment, so one would expect that the decline in oil prices will start to see those high costs start to fall.

That could benefit explorers and developers in well known and well serviced areas, but I am not sure about how much benefit explorers will get in frontier areas.

Q Do you see this decline in oil prices as a major impediment to shale oil and gas exploration in Australia?

Yes, aside from already committed activity, I believe it will definitely lead to a slow-down in any higher cost exploration and development activity. We have already seen Capex being cut by major and smaller oil and gas companies.

It was already hard to raise money for the junior explorers and it will now be harder now to raise capital for high cost and long term projects like shale in Australia.

9

WHAT’S ONat

TICKETS$85

PASSES $550

Join dignitaries from a host of African Nations at the Africa Oil & Gas Forum from 9am -5pm

Mingle with Subsea peers at the Dril-Quip Subsea Welcome Drinks from 5pm -7pm

Tuesday 10 March Pre-Show Events

Your day-by-day guide to make the most of your time at Australia's largest

Oil and Gas Event.

10 REGISTER NOW AT AOGEXPO.COM.AU

Wednesday 11 March

• At 9am the AOG Conference kicks off with Plenary, Subsea, Australian Industry Participation and Managing Contractor Health & Safety streams (Turn to the back of this magazine for the Conference Program Overview).

• At 10:30am doors open to Australia’s largest Oil & Gas Exhibition, where 620 exhibitors are ready to meet you. Register at aogexpo.com.au to save the $20 at-show charge.

• Meet the industry at Carnarvon Petroleum Special Interest Lunch at 12:30pm–1:30pm. Tickets $99 or free for conference attendees.

• Celebrate the oil & gas industry with an evening of great food, drinks and entertainment at AOG Opening Party from 6.30pm – 8.30pm.

TICKETS$99

TICKETS$99

*See aogexpo.com.au for terms and conditions.

*All prices include GST.

in the 2015WärtsiläCASH PRIZE

DRAW

WIN$10,000*

• Day 2 of the AOG Conference kicks off at 9am with FLNG, Human Capital and Subsea a key focus. Turn to page 4 for more info on FLNG, page 10 for Human Capital and page 12 for Subsea.

• AOG Exhibition doors open at 10:30am. Explore five industry zones throughout the show including Non-Destructive Testing & Condition Monitoring Zone, Instrumentation Control & Automation Zone, Subsea Zone and much more.

• Meet the industry at Timor-Leste Special Interest Lunch at 12:30pm – 1:30pm, Tickets $99 or free for conference attendees. Turn to page 15 to read more.

• Book a table and join industry peers at the AOG Official Dinner from 7pm–11pm.

TABLES$2200

INDIVIDUAL TICKETS$199

TICKETS$99

Thursday 12 March

• The third and final day of the AOG Exhibition is open from 10:30am-4pm.

• Graduate Careers Day invites the future of the industry to AOG to meet key oil and gas players.

• Be inspired at AOG Women High Tea from 1pm-4pm.

• Don’t miss out on the Wärtsilä $10,000 cash prize draw at 4pm. Remember, you must be present to win.

TABLES $1100

INDIVIDUAL TICKETS$89

Friday 13 March

11

Mental health issues on the agenda

With the high profile Western Australian Parliamentary Inquiry into “Mental Health Impacts of FIFO Work Arrangements” set to table its findings in early March, there is no doubt that the Human Capital stream at AOG 2015 on Thursday 12 March will attract a great deal of industry, public and media attention.

A special panel session on FIFO Mental Health will focus heavily on the Parliamentary Inquiry, which has attracted significant media attention on the back of a number of alleged FIFO-related suicides. Dr. Graham Jacobs (MLA), a member of the Parliamentary Inquiry is a keynote speaker and a participant in the AOG FIFO Mental Health Panel. He will provide tremendous insight into the evidence presented to the committee and the more than 40 written submissions received since public hearings began in October 2014. Dr. Jacobs is joined on the panel by Western Australian Chamber of Minerals and Energy (CME) Deputy Chief Executive, Nicole Rooke; TLC Director, Alistair Box and psychologist Greg Bayne.

Graham Jacobs will provide tremendous insight into the evidence presented to the committee.

Other sessions to look forward to in the Human Capital stream include:

TO REGISTER FOR THE HUMAN CAPITAL STREAM

THURSDAY 12 MARCH VISIT

AOGEXPO.COM.AU/HUMANCAPITAL

GLOBAL TRENDS IN HUMAN CAPITAL, This session will be chaired by Wirrpanda Foundation Chairman and former West Coats Eagles AFL star, David Wirrpanda. This session features a presentation and workshop on the world-renowned Global Human Capital Trends Report. Julie Harrison, a Partner specialising in Human Capital at Deloitte in Perth, will provide an oil and gas perspective and an update on what can be expected to be found in the report when it is handed down later this year. The session will also feature a presentation on “Ensuring Competitiveness Through Productivity: The Importance of Workplace Relations Reform” given by Steve Knott from the Australian Mines and Metals Association.

HUMAN CAPITAL KEY ISSUES AND INSIGHTSThis session features presentations on “From Green to Brown to Gold: Using the Science of Change to Ensure Operational Readiness for Asset Optimisation Projects” to be presented by Corrie Scheepers and Melissa Bell of the Terrace Initiative; “Employee Engagement in the Oil and Gas Industry” presented by Fiona Scullion of The Right Group and Maud Kay of Rigzone; “On the Waterfront; An Indigenous Perspective” presented by Wayne Bergmann of Aboriginal Maritime; and “O&G Workforce Planning” presented by Sam Russell and Craig Bonanno of the Rhodes Business School (Australia).

The Human Capital stream will wind up with an interactive play and workshop entitled “Much Ado About Hector” featuring Angela Sanderson-Green from The Experience Lab and Franca Sala Tenna of EEO Specialists. This high profile, high energy AOG stream is a must-attend.

12 REGISTER NOW AT AOGEXPO.COM.AU

13 REGISTER NOW AT AOGEXPO.COM.AU

THE CELEBRATIONFOR AUSTRALIAN OIL & GASDON'T MISS OUT ON THIS YEAR'S TOP NETWORKING EVENTS FOR THE AUSTRALIAN OIL & GAS INDUSTRY

AOG OPENING PARTY Wednesday 11 MarchConference delegates, visitors and exhibitors are invited to an evening of great food, drinks and entertainment.

Sponsored by

SUBSEA WELCOME DRINKS Tuesday 10 MarchThe ideal opportunity to mingle with key players and thinkers from the Subsea sector of the oil and gas industry.

Sponsored by

BUY YOUR TICKETS AOGEXPO.COM.AU/EVENTS

AOG WOMEN Friday 13 MarchConnecting and inspiring women for an afternoon of aspirational key note speeches and an insightful panel whilst sharing a high-tea with peers across the industry.

Brought to you by

AOG OFFICIAL DINNER Thursday 12 March Join your industry peers and colleagues at the official dinner, one of the key networking events on the Australian oil and gas calendar.

Sponsored by

With billions of dollars in Capex being out-laid on subsea developments in the region and subsea being a major component of the AOG 2015 programme, it is timely to speak with Mike Robinson, Chairman of Subsea Energy Australia (SEA) about his views on where this highly specialised sector of the oil and gas industry is headed.

AOG: Mike, thanks for joining us. I wonder if we could start off with your views on what the Australasian subsea market is looking like going forward?

Mike Robinson: Thank you and nice to join AOG on this important discussion. Opportunities do exist in the local subsea market, however, the large mega projects are fewer and further apart compared to the large amount of activity which occurred between 2010 and 2012.

Woodside’s Browse is the mega project that everyone is looking at, with an expected FID around the end of 2015. One of possibly three FLNG vessels installed locally with associated subsea hardware and ongoing Life of Field support, this is a significant subsea project that has everyone’s attention. Woodside is also progressing with its Persephone and Greater Western Flank projects in 2015, with opportunities for Australian industry participation in both projects. On the other side, projects such as GDFSuez’ Bonaparte FLNG development have been delayed, while there is a hold on Hess’ Equus development off the West Australian coast. Add-on or ‘infill’ wells for existing projects such as Gorgon and Wheatstone, as well as Concerto, may slide to the right based on current information, however new equipment will be needed to maintain gas production levels for the LNG/FLNG facilities.

The well-known sale of Apache’s gas assets to Woodside may influence decisions on future add-on systems to Julimar and other potential Apache developments such as Zola. Oil developments are fewer, but still around with some possible work on Eni’s Kitan, pending drilling results, as well as Woodside’s Greater Enfield and the recent Apache/Carnarvon find. However, the current oil price woes may impact decisions and timing on these projects.

AOG: What have been some of the major new technical developments in the subsea sector?

MR: The advent and expansion of the utilisation of large bore Vertical Subsea Trees, as first used by Woodside on Perseus over Goodwyn (PoG), Pluto and Angel - are now being supplied and installed in their latest versions for Wheatstone, Prelude, Xena and Ichthys. Acceptance of the use of subsea processing has taken a significant step forward with one major operator prepared to consider subsea gas-liquid separation on essentially equal terms to those used on a topside facility.

So the future for subsea is for the increased use of single and or multiphase boosting, as well as gas-liquid, and or, liquid-liquid separation. Raw and or treated seawater injection is also attracting interest for reservoir pressure maintenance. Long distance tiebacks for stranded gas is now part of the portfolios of many global oil companies, with Australia having more than its fair share. So the use of new technology, such as

SUBSEA HIGHLIGHTSThe latest in subsea developments & what to look for at AOG

14 REGISTER NOW AT AOGEXPO.COM.AU

15 REGISTER NOW AT AOGEXPO.COM.AU

E N G A G I N G B U S I N E S S P E O P L E

BUSINESSNEWS.COM.AU

Engage with Oil & Gas industry leaders and fuel your operations with Business News,WA’s most in-depth resource news and

information platform.

Call our team today on 08 9288 2153 to map out your

marketing needs.

Register at aogexpo.com.au using promo code OILGAS to receive

a 2 month free subscription.

By using the promo code you are opting in to receive Business News communications.

Articles

ExecutiveRemuneration

Corporate Finance

Directors Interests

TotalShareholder Returns

Companies

Industries

People

2015_AOG-V-Half.indd 1 30/01/15 7:54 AM

processing, subsea wet or dry gas compression, along with the implementation of long distance controls (either in electro-hydraulic or all electric), are key parts of the strategies being used to unlock these opportunities.

AOG: What are some of the exciting subsea related events attendees will see at AOG 2015?

MR: Subsea Energy Australia supports the AOG Conference in association with the Society for Underwater Technology (SUT) and Subsea UK. We see the event as a key technical and commercial conference with top class technical and pertinent, commercially focused presentations and workshops.

These sessions help drive efficiency, share learnings and help to maintain Australia as a leader in the oil and gas industry.

Many companies choose to showcase their latest technologies at AOG, with ample opportunity for those new to the subsea sector to be educated and informed at the various exhibition stands.

SEA is a not-for-profit industry association aimed at championing Australian subsea industry capabilities to the wider regional and global markets. The association, along with, Society for Underwater Technology (SUT) and Subsea UK (SUK) has played a key role in putting together the subsea streams and subsea zone at AOG 2015.

SUBSEA AT THE AOG CONFERENCE WEDNESDAY 11 MARCH

AND THURSDAY 12 MARCH

VISIT AOGEXPO.COM.AU/SUBSEA

FOR MORE INFORMATION

A leading Australian energy industry analyst has suggested that mergers and acquisitions (M&A) activity will continue to grow in Australia on the back of the current crash in global crude oil prices.

Peter Strachan of Stock Analysis says a number of junior Australian oil and gas companies are already facing capital raising difficulties because of a decline in equity markets, and that a number of them will need to consider friendly mergers to survive. “Mergers and acquisitions has begun to be a feature. There are far too many ASX listed small oil and gas companies unable to fund or manage development. A number of oil companies will need to conserve the most valuable asset they have, cash, and a merger is one strategy. I believe there will be more mergers like MetgasCo and Elk to consolidate good assets, management and cash,” Strachan says.

While spending on new oil exploration and development projects in Australia will be severely affected by the current low price environment, Strachan believes the domestic gas market will fare much better because of a forecast growth in demand across the country.

“ Domestic gas projects should see strong local prices and the outlook may be less affected. However, projects that are in the wings for development will be shelved, largely because they will not be able to attract debt or equity support.”

According to Strachan, it is that difficulty in obtaining capital that is as much an issue for the local oil and gas sector as the fall in oil prices:

“ The biggest impediment for growth in the Australian oil and gas industry remains cautious capital with a capital strike affecting exploration and development, behind that is an underlying lack of financial success shown by the capital intensive industry.”

Asked whether the current cutback of drilling and seismic fleets will eventually lead to lower costs and a resurgence in local exploration activity, Strachan says that many companies will still be handcuffed by a lack of capital. “Costs are falling for sure and those with cash and projects to drill will be able to take advantage, but the reason that prices are falling is weak activity. What we will see in a two to three year time frame is a serious shortage of oil as project development is delayed.”

Strachan is forecasting that US oil production will decline rapidly this year and that oil will reach a price of around US$90 per barrel by early 2016, which will be needed to meet production costs. “Exogenous outages of supply are likely to restrict supply and the current low price will see US production decline by mid-2015.”

“ In the longer term, all up costs of production for US shale oil is around US$70/bbl, after modest dividend payment, so a price of US$90 will be needed to provide sufficient return to attract investment. OPEC nations need +US$90/bbl to keep budgets in balance,” Strachan suggested.

AUSTRALIAN OIL AND GAS M&A ACTIVITYLikely to continue on back of crude price collapse

What do you think?Share your thoughts

16 REGISTER NOW AT AOGEXPO.COM.AU

AOGExpo @aog_expo AOG

It is one of Australia’s nearest neighbours, yet most Australians know very little about it. It has a close but sometimes feisty relationship with the Australian Government, but few Australians really understand its politics. It is considered prospective for significant onshore and offshore oil and gas reserves, but it is virtually unexplored. It holds the fate of major Australian projects in its hands, but very few know what its plans are.

It is Timor-Leste, and attendees at AOG 2015 will have a unique opportunity to get the answers when a large delegation of leading Timor-Leste dignitaries participate in a must-attend lunch at the Australasian Oil and Gas Exhibition and Conference (AOG) in Perth in March. Led by Timor-Leste’s Minister of Petroleum and Mineral Resources, H.E. Alfredo Pires, the special lunch entitled ‘Timor-Leste — A country of opportunity', will provide a unique opportunity to hear first-hand about the headline making oil and gas developments occurring to the northwest of Australia.

Other senior Timor-Leste officials participating in the lunch include Gualdino Da Silva, the President of Timor-Leste’s national petroleum authority Autoridade Nacional do Petroleo (ANP); Francisco Montiero, President and CEO Timor Gap E.P, the national oil and gas company of Timor-Leste; and Ambassador Abel Gutteres, Timor-Leste’s Ambassador to Australia.

Minister Pires said he is looking forward to returning to Perth and outlines “Now with Sunrise discussions taking place, the development of our own oil and gas infrastructure and an acreage release in 2015, I am pleased to say that this is a story with many more chapters to be written. Timor-Leste looks forward to discussing what lies ahead in this story, convinced the best is yet to come.”

Bill Hare, AOG Event Director at Diversified Communications, said the participation of Minister Pires and the Timor-Leste delegation will be a real highlight at AOG 2015. “This will be a very rare opportunity to hear first-hand about this dynamic young nation, its relationships with the Australian and global oil and gas sector and its plans to develop its hydrocarbon potential.”

Attendees at the AOG lunch will also have the opportunity to hear the latest on Timor-Leste’s plans to stage its first bid round for onshore acreage as the country looks to build on its already impressive petroleum industry growth.

HIGH POWERED TIMOR-LESTEDelegation to unveil country’s oil and gas future

SPECIAL INTEREST

LUNCH

TICKETS$99

TO BUY YOUR TICKETS PLEASE VISIT AOGEXPO.COM.AU/TIMORLESTE

Please Note: Tickets are complementary with a Thursday AOG Conference pass.

“ TIMOR-LESTE LOOKS FORWARD TO DISCUSSING WHAT LIES AHEAD IN THIS STORY, CONVINCED THE BEST IS YET TO COME.”

Questions likely to be asked will include:

• What is the future for the Sunrise gas field?

• What is the latest on maritime boundary discussions between Timor-Leste and Australia?

• What exploration and business opportunities are available?

17

18 REGISTER NOW AT AOGEXPO.COM.AU

AOG 2015 WHO’S EXHIBITING?

AKER SOLUTIONSAker Solutions provides oilfield products, systems and services for customers in the oil and gas industry world-wide. The company’s knowledge and technologies span from reservoir to production and through the life of a field. Aker Solutions employs approximately 17,000 people in 20 countries.

OCEANEERING

Oceaneering’s Protective Coating Removal Tool (PCRT) is an effective and efficient means of removing concrete weight coat and protective coating on subsea pipelines in preparation for inspection or repair scenarios for both Diver and ROV applications. This tool was 100% designed and manufactured in Australia by Oceaneering’s local Deepwater Technical Solutions team. VISIT

STAND

D20VISIT

STAND

B32

BAKER HUGHESBaker Hughes Process and Pipeline Services (BHPPS) is a global service provider for Pre-Commissioning, Commissioning, Process and Inline Inspection Services. BHPPS provides the entire spectrum of equipment for your project requirements which are all certified to Australian Standards. Combining expertise with advanced technologies Baker Hughes safely improves efficiency and reduces downtime.

TRACERCOTracerco releases its highly anticipated fast screening technology, Explorer™ to be used as complimentary technology to their breakthrough subsea CT scanner, Discovery™. Explorer™ allows oil companies to detect the location of subsea flow assurance issues for closer characterisation by Discovery™. It is a cost effective, non-intrusive method of pinpointing areas of interest for flow abnormalities at depths of up to 3000m.

VISIT STAND

F18VISIT

STAND

D31

AOG has over 620 exhibitors from 22 countries

CHECK OUT THE FULL EXHIBITOR LIST AT AOGEXPO.COM.AU/EXHIBITORS

CHALLENGER INSTITUTE OF TECHNOLOGYChallenger Institute of Technology is home to Australian Centre for Energy and Process Training (ACEPT), providing para-professional training, pre-apprenticeships, apprenticeships and traineeships that lead to jobs in the engineering and oil and gas sectors. Whether you are a tradesperson seeking a more senior role or breaking into the industry, Challenger expertise can provide the career boost you are seeking.

WILSON TRANSFORMER COMPANYWilson Transformer Company, in partnership with GridON, is proud to introduce its innovative Fault Current Limiter to the Australian and international markets. The Fault Current Limiter is a service proven, fully tested commercial product which is designed to suppress system faults and remains online during a fault and after a fault is cleared.

VISIT STAND

X5VISIT

STAND

Q5

ONESUBSEA

OneSubsea delivers integrated solutions, products, systems and services for the subsea oil and gas market. The company offers a step change in reservoir recovery for the subsea oil and gas industry through integration and optimisation of the entire production system over the life of the field.

YOKOGAWAYokogawa is a leader in industrial automation within the worldwide LNG industry. With over 30% of the worldwide liquefaction and regasification plants featuring Yokogawa control systems, Yokogawa have the knowledge and experience to ensure that the critical information in plants is fully visible for enhanced production control and management.

VISIT STAND

E26VISIT

STAND

208

18 REGISTER NOW AT AOGEXPO.COM.AU

*See aogexpo.com.au for terms and conditions.

REGISTER NOW

FOR YOUR CHANCE TO

AWIN$500*

Print Hall Voucher

Up to $3,500 worth of prizes to give-away

USE PROMO CODE AOG15

CONFERENCE PROGRAM

KEY SPEAKERS

CONFERENCE PROGRAM OVERVIEW

AOG Subsea

9:00 Plenary Exploring

Subsea Contracts

New Trends in Flow

Assurance

Creating, Extending and

Mending Subsea

Systems

Inspection Maintenance & Repair (IMR) - Best Practice

10:30 Morning Tea

11:00Australian

Industry Participation

Managing Contractor Health and

Safety

Exploring Subsea

Contracts

New Trends in Flow

Assurance

Creating, Extending and

Mending Subsea

Systems

Inspection Maintenance & Repair (IMR) - Best Practice

12:30 Lunchav

12:30 Special Interest Lunch: Carnarvon Petroleum, opening up a new oil province on the North West Shelf

13:30Australian

Industry Participation

Managing Contractor Health and

Safety

Subsea Market Outlook

New Trends in Flow

AssuranceRiser Systems

Inspection Maintenance & Repair (IMR) - Best Practice

15:00 Afternoon Tea

15:30Australian

Industry Participation

Managing Contractor Health and

Safety

Subsea Market Outlook

New Trends in Flow

AssuranceRiser Systems

Inspection Maintenance & Repair (IMR) - Best Practice

17:00 Close

WEDNESDAY 11 MARCH AOG STREAM SUBSEA STREAM

WEDNESDAY 9.00 AOG

Richard HinkleyChevron Perth

Global Technology Centre Manager

WEDNESDAY 11.00 AOG

Ralph ForsterManager

Strategic Sourcing & Supplier RelationsClough

WEDNESDAY 11.00 AOG

Hendrik SnymanChief Procurement Officer

Woodside

WEDNESDAY 13.30 AOG

Graham PunlerDirector of Projects

Worley Parsons Services

AOG STREAM SUBSEA STREAMTHURSDAY 12 MARCHAOG Subsea

9:00 Human Capital FLNGSubsea Controls,

Sensors & MonitoringPipeline Design

& Installation Systems

10:30 Morning Tea

11:00 Human Capital FLNGSubsea Controls,

Sensors & MonitoringPipeline Design

& Installation Systems

12:30 Lunch

12:30 Special Interest Lunch: Timor-Leste – A country of opportunity

13:30 Human Capital FLNGAsset

IntegritySubsea Controls,

Sensors & MonitoringPipeline Design

& Installation Systems

15:00 Afternoon Tea

15:30 Human Capital FLNGAsset

IntegritySubsea Controls,

Sensors & MonitoringPipeline Design

& Installation Systems

17:00 Close

TAP INTO THE MINDS OF OIL AND GAS EXPERTSOver 150 speakers come together at AOG conference to cover a wide range of hot topics affecting the oil and gas industry today. Explore 13 comprehensive conference streams including a dedicated FLNG and Subsea stream. One and two day passes are available from $550 inc GST. Find out more and book your passes now at aogexpo.com.au/conference.

WEDNESDAY 13.30 Subsea

Mike EfthymiouProfessor

The University of Western Australia

THURSDAY 9.00 AOG

Steve KnottChief Executive

Australian Mines and Metals Association

THURSDAY 13.30 AOG

Graham JacobsMLA

Member for Eyre

WEDNESDAY 13.30 Subsea

Jason WaldieDirector

Douglas Westwood

THURSDAY 9.00 & 11.00 AOG

Neil GilmourVice President Development

Shell Integrated Gas

CONTACT AOG FOR MORE INFORMATION AT AOGVP@DIVCOM.NET.AU OR CALL +61 3 9261 4500AOGEXPO.COM.AU

Supported by

Proudly supported by

Information contained in this magazine is correct at time of printing and subject to change. AOG reserves the right to change any of the event schedule without notification due to unforeseen circumstances.